Delegation of Decision Rights, Incentive Compensation and Performance Measures: Evidence from international hotel chains

This thesis examines the organizational control choices, namely delegation of decision rights, incentive compensation, and performance measures in international hotel chains. I find that the boundary spanners are managed differently between the contractual arrangements with more authority for boundary spanners and less formality in the incentive contract when the owner runs the hotel. I find that chains rely on objective and standardized incentive contracts and specialize in collecting financial and non-financial performance measures. They are not just passively measuring performance, but they develop capabilities and formal systems in performance management that are valuable resources that hotel owners want to access.